The new Surface 3 will cost less than the US$799 (A$1,048) starting price for the Surface Pro 3 introduced last year, but will also have a less powerful processor and lack some other features.

"Surface 3 brings what customers love about Surface Pro 3 to more people, delivering the premium design and productivity of Surface in a more affordable device," said Panos Panay, who heads the Surface division for Microsoft.

The new Surface will have an optional feature not available on its predecessors -the ability to connect to wireless carriers with a high-speed connection.